SMBI's Record Bond Sale Highlights Domestic Liquidity

March 17 saw Philippine brewing giant San Miguel Brewery (SMBI) raise over US$800mn, in a record bond sale that further underlines CFW's prediction that those companies still boasting strong sales, respected brands and sound balance sheets would still enjoy access to liquidity in domestic bond markets (see 'A Record Boom In Corporate Debt', CFW, March 2 2009). SMBI issued over PHP38.8bn (US$800mn) worth of three, five and 10-year bonds at an aggressively priced 250 basis points (bps) over local treasury bonds, in the biggest debt sale by a private Philippine company on record. SMBI needed the cash to finance its ongoing purchase of domestic brands, land and assets from erstwhile parent San Miguel, part of an ongoing attempt to transform into a stand-alone enterprise under its new shareholder, Japanese giant Kirin.

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